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IFC’s financing will support a two-year investment program aimed at helping Astarta — which grows and trades grain and oilseed — purchase modern and efficient farm machinery and construct new storage facilities. The program also aims to improve the company’s resource efficiency and competitiveness by modernizing its sugar plants. This would help reduce the use of gas, electricity, and water.
|Viktor Ivanchyk, chief executive officer at Astarta|
“We are focusing on operational and production efficiency to remain strong and globally competitive,” said Viktor Ivanchyk, chief executive officer at Astarta. “IFC’s continued financial support will help us reach a new level in resource efficiency and support us as we strive to innovate and boost our exports.”
The investment is part of IFC’s strategy to strengthen Ukraine’s agribusiness sector and increase the country’s export competitiveness. According to the IFC, Ukraine is one of the world’s biggest agricultural exporters, accounting for about 10% of global grain exports. Astarta supplies grain to Asia, North Africa, and the Middle East.
|Stephanie von Friedeburg, IFC’s chief operating officer|
“With its fertile land and favorable geography, Ukraine has the potential to become a global agribusiness leader and play a vital role in food security,” Stephanie von Friedeburg, IFC’s chief operating officer, said during a signing ceremony in Kiev. “Working with partners like Astarta helps us catalyze private sector growth and innovation in the agribusiness sector and enhance inclusive growth.”
Astarta, an IFC client since 2012, has created nearly 1,000 jobs in rural areas over the last several years, despite Ukraine’s recession. The new project will further integrate farmers into the company’s domestic and global value chains.
IFC said it is a major investor in Ukraine’s agribusiness sector, having invested more than $1 billion to support projects across the value chain, boost innovation, and help producers enter new export markets.